This listing includes AI condition scoring, neighbourhood intelligence, and market valuation data — giving you a complete picture before you visit. Compare rental yield, price per square metre, and location strength against the broader Portuguese market to assess whether this property fits your investment strategy.
4-bedroom, 3-bathroom house of 367 m², built in 2005, energy rating B. Located on urbanização Boca do Rio, 7, Estômbar e Parchal parish, Lagoa municipality, Faro district. Noteworthy Features: The property includes a closed garage with an electric gate and an additional cabinet on the balcony for laundry appliances, enhancing both convenience and functionality.
The valuation. The asking price of €569,000 is significantly above the fair value of €441,830, representing an overpriced situation with a discrepancy of €127,170 (22.3%). Such a markup presents potential challenges for the investment. Buy-to-flip angle. With an asking price surpassing fair value, the buy-to-flip strategy would require substantial renovations or market shifts to recoup costs and achieve profit. The current market dynamics may not favor immediate resale opportunities. Buy-to-let angle. The estimated gross yield of 4.6% suggests moderate rental income potential at approximately €2,181/month, making long-term rental a viable option but still predicated on market demand within the Algarve's tourism-driven economy.
Fair value modelled at €441,830 from the area baseline, adjusted for condition and location. Asking €569,000 sits €127,170 (22.3%) above — overpriced versus fair value.
Asking €569,000 versus the urbanização Boca do Rio, 7 area baseline of €1,265,049 (€3,447/m²) for a median-condition unit of this size — the gap before quality adjustments.
AI Condition Index 84/100 (Condition 80 · Materials 85 · Room dimensions 85). Above-median finish quality lifts fair value versus a baseline unit needing CapEx.
Neighbourhood score 66/100 (Housing Market 80 · Amenities 60 · Economic 60 · Tenant Quality 65). Strong amenities and housing-market momentum support a premium to baseline.
urbanização Boca do Rio, 7
Area baseline €1,265,049 + condition +€45,875 + location +€23,817 = modelled fair value of €441,830 (€1,204/m²), a €127,170 (22.3%) gap versus the €569,000 asking price.
| Reference | Status | Price | €/m² | vs subject | Condition | Location |
|---|---|---|---|---|---|---|
| urbanização Boca do Rio, 7 | Subject | €569,000 | €1,550 | — | 80 | 66 |
| Ferragudo · 956e09 | Active | €850,000 | €3,025 | 95.1% | 75 | 64 |
| Ferragudo · 25f5aa | Active | €850,000 | €3,025 | 95.1% | 75 | 73 |
| Estômbar e Parchal · de0c2c | Active | €375,000 | €2,404 | 55.0% | 80 | 72 |
| Estômbar e Parchal · 82c7dd | Active | €375,000 | €2,389 | 54.1% | 75 | 67 |
| Median comp | €612,500 | €2,715 | 75.1% | 75 | 70 |
Short-term vacation rental The property is overpriced at €569,000, representing a 22.3% gap from the fair value of €441,830, which may limit profit margins in a tourism-driven economy. With a gross yield of 4.6%, the investment potential is diminished due to the inflated pricing amidst a neighbourhood rating of 66/100. Long-term rental Given the current listing of €569,000 and its significant overvaluation compared to the fair value of €441,830, long-term rental yields may not meet expectations in the competitive rental market. A gross yield of 4.6% combined with an average neighbourhood score of 66/100 suggests the property is not positioned well for stable rental income. Buy-and-hold At a listing price of €569,000, the property is overpriced by 22.3% against its fair value of €441,830, indicating potential long-term appreciation challenges. The modest gross yield of 4.6%, along with a neighbourhood score of 66/100, raises concerns about the viability of this buy-and-hold strategy in the current market context.
Economic Risk The economic stability score of 60/100 indicates potential vulnerabilities in the local economy that might affect long-term investment returns.
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